Forex: GBP/USD drops on US ISM non-manufacturing PMI

Looking into the weekly charts this morning it’s worth noting that recent price action failed to close the week beneath the important 1.3000 level and has found small support here just as it did at the end of December last year. This recent sell off has been quite aggressive (falling some 5.4% in the last 5 weeks) the last 4 weeks have posted consecutive lower lows and lower highs. According to Technical Strategist William Moore at RBS, “any support level has a lot of downside momentum to stop and around here at 1.3000 is so far proving quite resilient. Beneath there the extended neckline at 1.2896 sits waiting and 1.2730 waits even lower. The bias here is that the market’s slightly oversold here and one of these levels will provide some respite from the downtrend.”